Analysis Of The Trade Effect Of China

FTA is one of the forms regional economic integration which rise to become one of the most popular trends in international economic relations. China and ASEAN member states started the construction of China-ASEAN Free Trade Area which was divided into three stages in 2002 on account of the needs of development and the good basis for cooperation with each other. China-ASEAN Free Trade Area,which is the largest FTA among developing countries,formally completed in 2010.Many scholars keen to study on the issue about the effect of the CAFTA. At present, the majority of the research is confined to the differences of trade effects on amount and among countries, less on industry differences. Thus, this paper picks the difference among the industries as a breakthrough to study on the trade effect of the CAFTA.Based on the theory of the customs union,the paper combines the analysis of trade actuality on level of gross amount, country and structure with analysis of Trade Integration Index and Revealed Comparative Advantage Index to qualitatively judge the trade effect of CAFTA at first.Then,the paper uses the Trade Gravity Model to quantitatively judge differences of trade effect of CAFTA among industries.The products are divided into five categories according to classification of Lall (2000) on the basis of three code product of SITC Revision2.The study finds that the establishment of CAFTA strengthens bilateral trade ties, enhances the status of bilateral trade, optimizes trade structure,leads to industrial benign co-movement, and its effect on high technology industry is the most significant,so it enlightens that our government should seize opportunity of construction of "Maritime Silk Road of Twenty-first Century", exert comparative advantage, optimize the industrial structure, enhance international competitiveness...